June 11, 2024 14:07 GMT
Recent Hawkish Move In SONIA Moderates A Little
STIR
The aforementioned recovery/rally in gilts helps underpin SONIA futures, which last print flat to +7.5 through the blues, generally a little shy of session highs.
- BoE-dated OIS shows ~35bp of cuts through ’24 and more than fully discounts the first 25bp cut come the end of the Nov MPC, with the recent hawkish move moderating a little today.
- This morning’s UK labour market data provided the initial ‘dovish’ input, printing marginally softer than expected, before wider FI market matters came to the fore.
- Monthly UK economic activity and GDP data crosses early Wednesday.
BoE Meeting | SONIA BoE-Dated OIS (%) | Difference Vs. Current Effective SONIA Rate (bp) |
Jun-24 | 5.203 | +0.2 |
Aug-24 | 5.104 | -9.6 |
Sep-24 | 5.040 | -16.0 |
Nov-24 | 4.924 | -27.6 |
Dec-24 | 4.851 | -34.9 |
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